Guinea Economy - 2004

Economy - overview:
Guinea possesses major mineral, hydropower, and agricultural resources, yet remains an underdeveloped nation. The country possesses over 30% of the world's bauxite reserves and is the second-largest bauxite producer. The mining sector accounted for about 75% of exports in 1999. Long-run improvements in government fiscal arrangements, literacy, and the legal framework are needed if the country is to move out of poverty. Fighting along the Sierra Leonean and Liberian borders, as well as refugee movements, have caused major economic disruptions, including a loss in investor confidence. Foreign mining companies have reduced expatriate staff, while panic buying has created food shortages and inflation in local markets. Guinea is not receiving multilateral aid. The IMF and World Bank cut off most assistance in 2003. Growth should strengthen in 2004, however, because of a slowly improving security situation and increased investor confidence.

GDP:
purchasing power parity - $18.87 billion (2003 est.)

GDP - real growth rate:
2.2% (2003 est.)

GDP - per capita:
purchasing power parity - $2,100 (2003 est.)

GDP - composition by sector:
agriculture: 25%
industry: 37%
services: 38% (2001 est.)

Population below poverty line:
40% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 2.6%
highest 10%: 32% (1994)

Distribution of family income - Gini index:
40.3 (1994)

Inflation rate (consumer prices):
8% (2003 est.)

Labor force:
3 million (1999)

Labor force - by occupation:
agriculture 80%, industry and services 20% (2000 est.)

Unemployment rate:
NA% (2002 est.)

Budget:
revenues: $395.7 million
expenditures: $472.4 million, including capital expenditures of $NA million (2000 est.)

Industries:
bauxite, gold, diamonds; alumina refining; light manufacturing and agricultural processing industries

Industrial production growth rate:
3.2% (1994)

Electricity - production:
790.6 million kWh (2001)

Electricity - production by source:
fossil fuel: 45.5%
hydro: 54.5%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:
735.2 million kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
8,600 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Agriculture - products:
rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes; cattle, sheep, goats; timber

Exports:
$726 million f.o.b. (2003 est.)

Exports - commodities:
bauxite, alumina, gold, diamonds, coffee, fish, agricultural products

Exports - partners:
South Korea 17%, Spain 9.7%, Cameroon 9.3%, Belgium 9.2%, US 8.9%, Ireland 8.2%, France 6.8%, Russia 6.4%, Ukraine 6.3%, Germany 4.8% (2002)

Imports:
$646 million f.o.b. (2003 est.)

Imports - commodities:
petroleum products, metals, machinery, transport equipment, textiles, grain and other foodstuffs

Imports - partners:
France 17.9%, Cote d'Ivoire 10.6%, Italy 8.5%, US 7.8%, Belgium 7.2%, China 5.4%, UK 5% (2002)

Debt - external:
$3.25 billion (2001 est.)

Economic aid - recipient:
$359.2 million (1998)

Currency:
Guinean franc (GNF)

Currency code:
GNF

Exchange rates:
Guinean francs per US dollar - NA (2003), 1,975.84 (2002), 1,950.56 (2001), 1,746.87 (2000), 1,387.4 (1999)